09.10.201501:00 Forex Analysis & Reviews: Technical analysis of EUR/USD for October 9, 2015

Overview:

• Due to the previous events, the EUR/USD pair is still trading between the levels of 1.1307 and 1.1221. Therefore, it is recommended to be careful while making deals inside this area. Also, it should be noted that the market showed the signs of instability. The trend movement was controversial as it took place in the narrow sideways channel (the range will be from the level of 1.1221 and the 1.1307 level). Therefore, it is necessary to wait for a sideways channel, which is passed through. Then the market will probably show the signs of a bullish trend because the support has already set at the level of 1.1221. In other words, buy deals are recommended above the level of 1.1221 with the first target at the level of 1.1307 to test the resistance. From this point, the pair is likely to begin an ascending movement to the point of 1.1221 and further to the level of 1.1360. The level of 1.1360 will act as strong resistance in order to form a new double top. Furthermore, it should be noted that the double top will set at 1.1325. Nevertheless, if the pair fails to pass through the level of 1.1307, the market will indicate a bearish opportunity below the minor resistance level of 1.1307. So, sell deals are recommended below the level of 307 in the long term with the first target at 1.120. The pair is likely to turn downwards continuing the development of the bearish trend to the level 1.1189.